https://www.taxtmi.com/caselaws?id=218696 The ITAT allowed the appeal, overturning the CIT(A)'s decision to disallow expenditure on administration for a company with no business activity. The ITAT emphasized the necessity and commercial justification for the increased remuneration paid to the Director, citing the principle of expenditure being deductible if made wholly and exclusively for earning income. The ITAT deleted the addition of Rs. 49,66,499/- for remuneration and administrative expenses, ultimately ruling in favor of the company. en-us Fri, 27 Jul 2012 00:00:00 +0530 Fri, 23 Nov 2012 09:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=218696 The ITAT allowed the appeal, overturning the CIT(A)'s decision to disallow expenditure on administration for a company with no business activity. The ITAT emphasized the necessity and commercial justification for the increased remuneration paid to the Director, citing the principle of expenditure being deductible if made wholly and exclusively for earning income. The ITAT deleted the addition of Rs. 49,66,499/- for remuneration and administrative expenses, ultimately ruling in favor of the company. Case-Laws Income Tax Fri, 27 Jul 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=218696